I’ve struggled with what I was going to write about and how best to say it during the past week, so I thought that it may be better to wait until after the latest Tiered Lockdown announcement to do so. It has arrived and to be honest I’m not sure that I am really any the wiser; maybe I’m trying to apply too much common sense to the argument?
In terms of how all of this uncertainty and the arrival of the latest ‘wave’ of covid cases has affected investment markets, well in short it hasn’t really; share prices continue to limp forwards overall, led by mainly overseas good news, the latest being the fact that China’s economy is recovering well (whoopee for them!). I guess the view must be that what is good for them will eventually be good for us, but we remain a long way from a positive economic recovery as things stand and leaking money as a nation largely stood still.
Without navigating into choppy political waters, as I’m sure we all harbour a view on how things are being handled generally, I think that eyes are very much on what happens in the coming days with regard to our Brexit agreement negotiations and market activity will react to this directly in one way or another, depending on the nature of any deal we may agree. Added to this will be the outcome of the United States election next month, although many investors are already factoring in a Biden victory; probably what is more relevant in many ways is the structure and timing of any fiscal stimulus package which their people are desperately waiting for.
With little to really add at this time, I am pleased to see that investment returns, other than cash deposits, are generally creeping/progressing in the right direction and so I am going to just keep my head down, fingers crossed and continue to do as instructed, although on a personal note I have certainly found the last part the hardest this year, as my business is, and always has been, about the close connection I enjoy with you all, as friends as well as clients and hopefully we can soon catch up and reflect on what a weird year 2020 has been, for so many reasons.